To the DeFi community,

This week, Polygon Labs released its zero-knowledge-based rollup network, called Polygon zkEVM, providing a new scalability solution for Ethereum apps. 

The network has attracted over 50 projects from crypto, web3, and gaming spaces, including Uniswap and Aave, and is natively compatible with Ethereum apps. The mainnet is permissionless, and anyone can bridge assets and use them in zkEVM-native apps. 

The launch of Polygon's zkEVM follows over a year of development and two independent audits to ensure its security.

Polygon (labs) @0xPolygonLabs

Today, Polygon Labs is announcing that Polygon zkEVM is fully open-source. Every single component is licensed with AGPL v3, including the zkProver, which is where all of the ZK magic happens 🪄 More: go.polygon.technology/zkevm-open-sou…

2:18 PM ∙ Mar 27, 2023

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Also joining the race is ConsenSys, which has launched a public testnet of its its own zkEVM scaling network called "Linea." 

ConsenSys has already processed over 350,000 transactions on its private testnet. Linea will natively integrate ConsenSys' MetaMask wallet and Truffle developer toolkit. 

The platform is the third zkEVM platform to come to market, following Matter Labs’ zkSync Era and Polygon Labs’ zkEVM above.

ConsenSys @ConsenSys

🔊 Thrilled to announce that ConsenSys zkEVM is now Linea✨: an innovative Layer 2 solution for Ethereum! @LineaBuild empowers developers to build scalable dapps without constraints, pushing the boundaries of what's possible in web3 🚀

Linea @LineaBuild

Introducing ✨Linea - a developer ready, zk rollup powered by @Consensys 🧵👇 https://t.co/4nE0UWpd1a

9:05 AM ∙ Mar 28, 2023

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The Euler Finance hacker has returned 58,737 ETH in two instalments, bringing the total returned to 61,737 ETH out of the 96,000 ETH stolen. 

The hacker’s return of the funds was accompanied by a message apologising for his actions and taking note of the impact the hack had on the community. The protocol’s token price has increased by 43% on the news.

Shibe Magazine @ShibeMagazine

The Euler Hacker who stole 200M dollars just two weeks ago has now sent an apology to @eulerfinance via blockchain message…

8:12 AM ∙ Mar 28, 2023

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Decentralized exchange DYDX is transitioning to its own blockchain in the Cosmos ecosystem, from its current Ethereum Layer-2 network, StarkEx. 

The exchange is launching a private testnet of its Cosmos-based blockchain, which will be open to whitelisted third-parties acting as validators on the network. During the private testnet, DYDX will focus on creating validators, performing network upgrades, and testing out some of the exchange's main trading features. 

The exchange plans to roll out its public testnet in July, before a full launch in September. DYDX is also building an iOS app, an Android app, and a website.

dYdX @dYdX

MEV has been a significant issue for DEXs - we’re facing this head on with dYdX v4 ⚔️. We are researching and building novel mitigations for MEV into dYdX v4, uniquely enabled by app-chain technology. 🧵 below and read more at: dydx.exchange/blog/dydx-v4-a…

dydx.exchangedYdX v4 and MEVRebuilding dYdX as a standalone Cosmos based blockchain featuring a fully decentralized, off-chain, orderbook and matching engine....

4:07 PM ∙ Mar 29, 2023

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The zkEVM race is on, as three different zero-knowledge rollup platforms are presented to the Ethereum community: zkSync Era, Polygon zkEVM and Linea.

These platforms are the next exciting development in scaling, with some key differences over regular rollup platforms, including instant withdrawals to mainnet (as opposed to a forced delay, as on Optimism or Arbitrum) and a reliance on trustless mechanisms rather than the honesty of incentivised actors.

Will we have a “zkEVM season”?

Also of high interest is the CFTC’s action against Binance, including its derivatives platform – a move that has resulted in a significant exodus from the industry’s leading exchange.

This may lead to increased traction on decentralized derivatives alternatives such as DYDX, GMX and others, as traders look for new derivatives providers that are safer from regulatory action.

The US regulator crackdown on crypto doesn’t appear to be ending any time soon, as Biden proposes boosting the SEC with $2.4 billion in additional funding – paired with an anti-crypto Gensler at the helm.

Interest Rates

DAI

Highest Yields: Nexo Lend at 10% APY, Compound at 1.4% APY

MakerDAO Updates

DAI Savings Rate: 1.00%

Base Fee: 0.00%

ETH Stability Fee: 0.50%

USDC Stability Fee: 0.00%

WBTC Stability Fee: 0.75%

USDC

Highest Yields: Nexo Lend at 10% APY, Compound at 1.9% APY

Top Stories

Binance, CEO Zhao Sued by CFTC Over 'Willful Evasion' of U.S. Laws, Unregistered Crypto Derivatives Products

UNICEF hatches plan for a prototype DAO, following its crypto fund

SEC Chair Gensler welcomes Biden's $2.4 billion in funding, will use funds to fight 'misconduct' in crypto

EU Lawmakers Vote in Favor of Payment Limits on Anonymous Crypto Wallets

Stat Box

Total Value Locked: $49.2B (down 2.4% since last week)

DeFi Market Cap: $49.5B (down 2.5%)

DEX Weekly Volume: $9.55B (down 36%)

DAI Supply: 5.10B (down 3.4%)

Bonus Reads

[Samuel Haig – The Defiant] – Staked ETH Withdrawals To Activate On April 12

[Brayden Lindrea – Cointelegraph] – Coinbase wants devs to build inflation-pegged ‘flatcoins’ on its new ‘Base’ network

[Brandy Betz – CoinDesk] – Staking Protocol EigenLayer Raises $50M Amid Crypto Winter

[Jeremy Nation – The Block] – MakerDAO 'Endgame Plan' ratified in new 'Constitution'